The Bank Has a Positive Repricing Gap

question 53

Multiple Choice

The bank has a positive repricing gap.Is it exposed to interest rate increases or decreases and why?

• A)Interest rate increases because the interest income on its assets will rise more than the interest expenses on its liabilities and net interest income will rise.
• B)Interest rate increases because the interest income on its assets will fall more than the interest expenses on its liabilities and net interest income will fall.
• C)Interest rate decreases because the interest income on its assets will rise more than the interest expenses on its liabilities and net interest income will rise.
• D)Interest rate decreases because the interest income on its assets will fall more than the interest expenses on its liabilities and net interest income will fall.

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Referring to an injection given directly into the muscle.

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